EUR/USD holding tight to the edge of the cliff — Confluence Detector

The Technical Confluences Indicator shows that the EUR/USD is trading above a dense and potent cluster of support lines. If it falls over, it could turn into an avalanche. The $1.2155 line is the convergence of the Pivot Point one-week Support 2, the PP one-month S1, the Bolinger Band 1-hour Lower (Stdv. 2.2), the 1d-high and the 4h-high.

Should it fall, the next significant cushion is only at $1.2060. This is the meeting point of the Pivot Point one-day S3 and the PP one-week S3

On the topside, the EUR/USD faces massive resistance. $1.2190 is the confluence of the BB one-day Lower, the Fibonacci 38.2% one-day, the Bolinger Band one-hour-Upper, the BB 15-Upper, and the Simple Moving Average 100-15m. 

The road to the upside is packed with many substantial lines of resistance which would limit any upside move of the pair.

All in all, the EUR/USD is currently confined to a narrow range. Should have the momentum to make a move, a break to the downside would allow for more significant falls.

Here is how it looks on the tool:

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. This means that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence